IBM announces layoff of 988 at Essex Junction plant

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Announcements came yesterday, June 4, that IBM has laid off 988 workers at its Essex Junction, Vt., plant, after having laid off a handful of workers last week in its Global Services division. This devastating news may just be the beginning of more troubles in Vermont’s ailing manufacturing industry, which has been hit hard by competition from neighboring states, as well as an overall slowdown in the sector. The layoffs, and a recent doomsday prediction by the state’s official economist, Jeffrey Carr, have state officials worrying about the Vermont’s viability over the longer term, and if it may be one of the states most hard-hit by this recession. “We’re doing what we can to offer incentives to businesses,” said state Sen. Dick Sears (D-Benn.), noting a recent announcement by U.S. Sen. Patrick Leahy (D-Vt.) that a $10 million government contract was awarded specifically to the Essex Junction plant. Through the DARPA (Defense Research Projects Agency), a branch of the Pentagon, the contract was given to JSAL Nanolithograhy of South Burlington, Vt., with IBM as subcontractor. The money — $3 million this year and $7 million next year — will be used for a research and development on “next-generation computer chips,” according to a release from Leahy’s office. Still, a $10 million contract is nowhere near the $1 billion being offered to IBM by the state of New York, part of a $3 billion capital expansion project at its East Fishkill, N.Y. plant, which observers say may eventually lure the company away from Essex Junction altogether. Rumors have been surfacing that the company may be sold altogether, rumors which company officials have denied. State Rep. Bernie Sanders (I-Vt.) issued a statement following the news yesterday. "Today is a very painful and difficult day for our many friends and neighbors who work at IBM, and my heart goes out to those who have lost their jobs and to their families. Needless to say, these job losses will have a negative impact on our entire community. These job cuts highlight the need for public officials in Vermont and across the country to come together to develop an economic development strategy that allows these talented individuals to create new enterprises in our state. Small business is and has always been the backbone of our economy and it is time that our economic polices reflect that reality." Being a small state, Vermont has little leverage to offer large-scale incentives to businesses such as IBM, which before the layoffs employed nearly 8,000 workers in a state with a population of little more than 600,000. But with the economy becoming more and more competitive in manufacturing and high-technology, businesses are almost expecting large contributions from state government as they plan for the future. Other closings have hampered the state in the past two years. Economist Carr suggests that since January of 2001, 6,100 private sector jobs have been lost in Vermont — 4,700 of those in manufacturing. In January, IBM laid off an additional 475 workers. Locally, the loss of Stanley Tools, which first left the historic Shaftsbury, Vt. branch where it had done business for nearly a century, resulted in over 100 workers without a job. And less than two years later, that company has announced it will move its headquarters offices from Connecticut to the island of Bermuda, a move that will save the company $30 million in U.S. taxes. Mack Molding of Arlington, Vt., was cited too as being very susceptible to downturns in the economy, as most of its business is done on a contract basis. In addition to Stanley, the Garelick Farms operation on Route 9 in Bennington, recently bought out by the largest milk producer in the nation, will be moving out this summer to consolidate in East Greenbush, N.Y., at an existing, larger facility it plans to expand. And on a more symbolic note, production facilities at Ben & Jerry’s — which is now owned by multinational corporation Unilever — will be closing in Bellows Falls and Springfield, Vt. The grass-roots ice cream maker epitomized the spirit of Vermont’s locally-owned, locally-run, responsible business practices. Industry analysts predict that at IBM’s Essex Junction plant, if the global slowdown in the computer industry continues as expected, up to 1,500 employees could be laid off, which would devastate the area south of Burlington. Some argue that Vermont’s lack of a business-friendly climate, and its floundering on construction of a Circumferential Highway to alleviate serious traffic congestion, will drive the entire operation elsewhere. Yet part of the problem stems from the fact that small states like Vermont, with limited tax bases and a spread out, rural population, will continue to suffer in the future. Unlike a corporation, they cannot merge with a bigger state to centralize services or combine capital. They cannot offer the incentive packages of a New York or New Jersey, because their residents do not earn enough money to begin with. While tough permitting policies and public interest groups may hurt the state’s image as a place for business, ultimately it lacks the bargaining leverage at a time when money talks louder than ever.
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Teacher of the Month: Kaylea Nocher

By Sabrina DammsiBerkshires Staff

NORTH ADAMS, Mass. — First-grade students in Kaylea Nocher's class feel secure and empowered in the classroom, confidently embracing mistakes as they take charge of their learning.
 
This safe and fun atmosphere has earned Nocher the iBerkshires Teacher of the Month designation. The Teacher of the Month series, in collaboration with Berkshire Community College, features distinguished teachers nominated by community members. You can nominate a teacher here. 
 
Nearly a dozen parents and colleagues nominated the Brayton Elementary School teacher, praising her dedication, connection to students, and engaging classroom environment — going above and beyond to foster growth in her students.
 
"My students are the most important part of the job, and instilling love and a love for learning with them is so valuable," she said. 
 
"We have these little minds that we get to mold in a safe and loving environment, and it's really special to be able to do that with them."
 
Nocher has built her classroom on the foundation of love, describing it as the umbrella for all learning. 
 
"If you have your students feel loved… in the sense that they have a love for learning, they have a love for taking risks, they have a love for themselves, and they can use that in everything that they do," she said. 
 
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